Poloniex is Down Amidst Rumors of Insolvency and New ToSsteemCreated with Sketch.

in poloniex •  7 months ago

Poloniex has recently gone offline, whether it's a DDoS or other issue, is not known.

polo.jpg

In recent days, stories have surfaced online about insolvency at Poloniex as the reason for low quality and time-delayed support. Whether this is true or not is not confirmed, but people are upset over being hacked and make claims.

Some say they are having trouble with an increase in demand these past few months. But they are not being transparent about their issues with their own user-base and customers.

One major recent change has been to the Terms of Service, where they say all users trading on the platform waive their right to participate in a class action lawsuit. This type of ToS is common in many places, even in some crypto markets, but with Poloniex adding it, it just fuels the fire and rumors about it's troubles and shady behavior.

What do you think is going on with Poloniex? Will it be back, or are they taking their customer's money and running? :P


Thank you for your time and attention. Peace.


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Haaaa, this could explain why they've refused to increase my withdraw limits. Supposedly, they couldn't verify my address LOL. Which is a bunch of B.S.

I really hope this isn't true. I never traded their, they wont deal with NY residents but after recent events, I'm glad I don't trade there. A big part of this game is risk management. That's why I try to spread my trades over multiple platforms and use cold storage wallets whenever possible. By opening multiple trading accounts, if one exchange goes down, you don't risk losing your entire portfolio and you still have coin to rebuild with.

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Good advice.

I hope not I have a lot at stake my holiday funds

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get it out while you can use software/hardware wallets or another exchange

This has been going on for three years and the troubles of late have been escalating ...I see the platform shutting down.

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Yeah I used to read polo's troll box when I first started trading 6 months ago, I followed a lot of the troll box complaints to reddit, over three years of complaints. Ive done a lot of reaserch regarding centralized exchanges, which made me extremely cautious about keeping coins on the exchanges wallet. Polo lost some of my sbd, it took two months get it back, they never comminicated with me when I filled a ticket, that was 3 months ago. I never traded more than 80 sbd or steem on that exchange. I like blocktrades ...it's simple lololol

I mainly stopped using Poloniex when a bunch of Steemians funds were stuck there. The writing could be on the wall. I feel like every exchange has probably been hacked on some level but it is just how well they have protected the funds from huge losses and if they can make it back fast enough.

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I also stopped using Poloniex around the time you say. It wasn't necessarily because of the hold on Steem......but I definitely started getting a bad vibe and just moved everything into a hardware wallet for safety.

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Good thinking. Better safe than sorry!

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"hacked" means that they took your money lol

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Yup! Now they will skip town and everyone will be like WTF!

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Yeah I'd figure they should be more secure after getting hacked hehe.

Poloniex used to be one of the best exchanges around, who didn't love the trollbox? Now with no trollbox there is really no reason to use them :p

On a serious note I hope everything turns out OK and people will be able to finally withdraw their STEEM/SBD and other cryptos...

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Yup hopefully they get their act together.

When I saw the list of wallets in "maintenance" mode growing I started getting Crypsty flashbacks.
As my top trading exchange I'm rooting for them.

Some of us have been seeing the crumbling of Polo for some time. They have virtually no customer service, don't answer inquiries. A strategy seems to be to disable wallets at key times, or like now, one can't even log in. What is the Solution?? Use exchanges to do just that, exchange. Keep coins in Cold Storage!

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Yup, good lessons for us all.

It may be nothing, but adding that to their terms of service certainly sounds suspicious.

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Yes it does indeed!

thanks for flagging that info up to us ... peace to you too

There seems to be a shake-up in the exchanges lately. Some are being hampered by local laws and they must be under continual attack by crackers who aim to steal funds. We rely on them to be able to get our crypto into forms we can spend. Interesting times

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Yup. Transparency is key to maintain trust though ... they need to up their communications.

Sheshhh, I still have a few tokens in there lol

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Maybe there will be a rush of people trying to get there coins out lol.

Poloniex has been having issues especially since last year..guess bittrex is better.

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Not sure bittrex is much better. They had problems in the past too with user's funds. Any exchange(unless you control your keys...ehm Bitshares/Openledger) should not have funds sitting there for a period of time longer than needed.

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Good point. However I thought that openledger / bitshares are safe..I am gradually holding ome bitshares at openledger

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Yes, that is what I meant. Unless you hold your keys, which with Bitshares/Openledger, you do hold your keys. Other exchanges you would send your funds/crypto to them, they do the matches, and then are supposed to allow you to withdraw.

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Good point, thanks

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Yup, and you can still do short positions in Bitshares without someone else(exchange) holding your "borrowed" funds.

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Good point. So great to buy and hold some bitshares? EOS is a bit higher hope its not over blown

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Yup. Silly people...

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Hope we have our own trading platform..I posted about this issue last week (I guess).

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There is bitshares...

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Great, I use it via openledger and its very fast...good point.

Hehe maybe they are taking people's money , a little from each so one can notice :D maybe they are loosing lots of people or maybeee they are tired of problems and are fixing them @krnel

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Maybe...

Yeah I sent some Steem Dollars here from Poloniex and they never arrived - $40 worth. Da phuc was that about????

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I'm in accoutn right now and it seems fine

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Yeah, I was one of the lucky ones that my SBD passed and I got to sell it hehe.

When it started having problems last month, I've been reading speculations that it's sort of reminding them of the Mt Gox incident (I had no idea what that was before) saying it was like this too with all the withdrawals being halted and suspension of trades and such. I think people should learn from the past and at least have a fall back/exit plan. It won't do to be crying after the glass has already fallen off the table and spilled all over the place. Might be a gopd idea to move the glass far from the edge or at least be near the table enough to catch it if it does start tipping over.

i hope poloniex will not be same as btc-e

Let me tell a TRUE STORY.
Somes years ago, during the first bitcoin buble ($1000+) I started to buy cryptocurrencies.
All my currencies were in Mintpal (Brutally Closed) and Cryptsy (Brutally Closed)... I was so upset that I stopped to be interested in cryptocurrencies until February 2017.

Let me, dig into Cryptsy. My god ! I remember, (Oh YES I remember) somes days before the brutal closed of Cryptsy there was somes guys on the troll box telling us
"Cryptsy will close. Withdraw all of your money"
Well... he was just kidding... NO !

My opinion : sometimes you must listen rumors.

I think they are going to take their customers money and run ! This has been going on for quite awhile and why I switched to bittrex , who now after trying for over a day to trade some steem still keeps saying steem and steem dollars are down for maintenance !! So I finally went to Blocktrades and had no problems there other now having to wait for 9 confirmations because of the Bitcoin hoopla !! LOL! At least block trade was much easier and now I just need to wait 3 day for it to be deposited by Quadrigacx !! Im tired out now !! LOL!! UPPED AND RESTEEMED!!

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Well they are back today. I don't have any more coins there, but plenty of people do.

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Oh cool ! Well I hope they have no problems getting at them and then exchanging them for Bitcoin ! Do you mean bittrex !?

I've written about this numerous times! Get out while you can..if you can!!!

Wow, I guess it is good that I moved my funds out of poloniex
Poloniex is just shooting themselves in the foot I think @krnel. All of these inconveniences are leading for people to move away from this exchange and new better exchanges are rising.
Let's hope they return and it doesn't just disappear like BTC-E

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Yup git out!

Thanks for article. I have a similar one where I'm asking people to indicate what they are doing if it comes back up. Interesting times.

https://steemit.com/poloniex/@realestatecoach/poloniex-down-or-what-to-do-when-it-is-up

They incorporated in Delaware Poloniex and their LLC was never really on the hook for anyone's money if they were to go down. I hope anyone on here can get their crypto out safe.

Nice posts and good information about poloniex @krnel

About the issue of poloniex has become our discussion here (indonesia), most poloniex users are very worried about the development of poloniex.

Can I translate your post into Indonesian then I post in my blog ?

If you give permission, I hope your information is useful for those piloniex users in Indonesia.

Thank you @krnel

I have some funds there hope its not hacked.

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Don't we all ;)

I like your post

Very good exchange.

They are tweeting that they are working on a connectivity issue that may take some time to correct.

Thank goodness I got what I had out...

This isnt entirely correct. They have stated that user's rights were waived in participating in a class action lawsuit in their old Terms of Service. So that wasnt an addition.

TBH I see everyone transitioning over to Bittrex. They're the only the exchange that doesn't suck. Make the transition quick, I see Polo leaving in a few months

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Yup, I'm already there.

I have steem in there now, am I able to transfer it to my steem account or are they considering this a withdraw? Please share.

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I wasn't able to get to the site now. If it comes back up transfer your funds to your steem account, or if that is not possible convert to another currency and send it to a wallet. Don't leave your funds on any exchange, just have it there long enough to make a trade, then transfer it out.

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Thanks friend - its not a lot but it all adds up!! SUNSHINE247

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You can't move Steem in or out of Polo for a while now.

I spend 2-3 hours yesterday night and this morning, trying to get my coins out of the mostly down Poloniex.

Took me a few hours, but managed to withdraw everything after changing it to ETH, lucky I only had $150 worth.

I heard from so many people that their withdrawal from Poloniex have been stuck for many days. So that might be a bad sign and alert to all people. I hope it will be ok. Hope it wont be the next BTC-e!
Anyway, thanks you for your information!

I dont think this will happen. They will be back soon i guess. People are panicing too fast. Just give them time.

They deserve it. While I like their trading platform a lot and I never had issues personally, what exactly were they doing with all their profits that they couldn't hire more staff or upgrade their platform? I won't be surprised if this is the end for Poloniex. Could be wrong.

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I have not found a full answer on why they have been having issues either. They take 15% off of margin lending, which is supposed to be used to protect/upgrade/maintenance everything, on the site. They have trading fees which are supposed to be put to maintaining as well.

Thank you for the information. I will be moving the small amount I still hold there out to my hard wallets. At times there are so many things going on it becomes hard to keep up with everything.

There seems to be some instability hitting many of the exchanges... I did have a Poloniex account till they kicked everyone with a Washington state address off the system, citing "state regulations." I sort of know what that was about (the pot industry using cryptos to evade state taxes-- weed is legal here) but it was still annoying.

I worry a bit about this as part of a bigger trend... people start exchanges on the whole premise that it's "no fee and low fee" and then reality comes calling when they discover it costs money to run a business. I also worry it's going to impact the long term adoption chances for cryptos... if you can't trade them, what good are they?